Forex Today: Panic and relief both backed the dollar

FXStreet Team FXStreet

Here is what you need to know on Thursday, January 9th:

At the beginning of the day, Iran launched a missile attack on US military bases in Iraq, sending speculative interest rushing into safe-haven assets. Initial reports suggested multiple US casualties, but it was later denied.
Hopes that hostilities have come to an end triggered a U-turn in markets. Such hopes were fueled by comments from both sides. Mohammad Javad Zarif, Iran’s foreign minister, declared that the country “took and concluded proportionate measures in self-defence,” adding they won’t seek escalation or war. US President Trump, on the other hand, hinted economic sanctions but no further retaliation.
The EUR/USD remained under pressure, ending the day barely above 1.1100 on the back of resurgent dollar’s demand.
The GBP/USD pair also eased, although it held within familiar levels, as speculative interest is waiting for a Brexit update. The UK Parliament vote on PM Johnson’s Withdrawal Agreement Bill, expected to take place this Thursday.
European Commission President Ursula von der Leyen said that she believes that a full EU-UK partnership deal can’t be achieved by the end of 2020.
USD/JPY soared past 109.00 on a better market mood.
Wall Street reverted pre-opening losses, posting substantial gains and settling near record highs.
Spot gold soared to 1,611, to close the day sharply lower at around 1,555.
Crude oil prices plummeted after US President Trump said they don’t need anybody’s oil.WTI settled below $60.00 a barrel.
Cryptocurrencies trimmed early gains ahead of the close.BTC/USD settled at around $8,000.
Crypto Today: Bitcoin set to retest critically breached range block

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FXStreet Team

FXStreet

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GBP/USD remains well bid around 1.3650

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Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

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